Rekindle 2003

Chapter 1168 This is a business
On the TV screen, the news anchor's voice was clear and urgent, delivering the latest developments in inland China's business community.

“Dear audience, Yanhuang Group officially announced today that the merger and acquisition negotiations with Abiyemu are not going smoothly. The two sides have major differences on key terms. Insiders of Yanhuang Group said that Chairman Qing Yun will consider looking for a new merger and acquisition entity.

Meanwhile, IBM shares plunged 31% at the opening and closed down 27%.

Please see our reporter's detailed report. "

In the picture, the iconic building of Yanhuang Group flashed before the camera, and then switched to the headquarters of Abiemu. The contrast between the two buildings seemed to foreshadow the coming business storm.

The reporter stood in front of the Yanhuang Group Building. In the background, the building's glass curtain wall was shining in the sun, looking particularly dazzling.

The headquarters of Abiemu seems a little gloomy. The contrast between the two makes people curious about the outcome of this business game.

"Between 2000 and 2003, Abiyem's personal computer business fell into an unprecedented financial crisis. During this period, Abiyem was like a giant ship that was about to collapse in a storm, facing huge challenges and difficulties.

Once upon a time, Abbey's personal PC business occupied an important position in the market, and its blue giant logo symbolized the authority and innovation of technology.

However, with the rapid changes in the market and the continuous advancement of technology, Abiymu's personal PC business has gradually shown signs of fatigue.

During this period, the personal PC market was highly competitive and price wars were constantly taking place. However, Abeymu's PC products failed to keep up with the market rhythm, product updates were slow, and cost control was weak, resulting in severe squeezing of product profit margins.

The financial statements showed shocking losses. In 2000, the personal computer business of Abiymu suffered losses of hundreds of millions of dollars. In the following years, this figure was not effectively controlled, but showed a trend of increasing year by year.

By 2003, the accumulated losses had reached billions of dollars, which was undoubtedly a heavy blow to Abyeim, which had always been known for its stability.

An internal employee of Abeymu revealed that anxiety and uneasiness began to spread throughout the company.

The R&D team is facing tremendous pressure. They need to launch more competitive products within a limited time to reverse the market decline.

The sales department is struggling on the market front line, trying to find a breakthrough, but the market feedback is not optimistic.

The management was even more uneasy, as they knew very well that if the situation could not be turned around quickly, Abyem's personal PC business would face the risk of being eliminated by the market.

At the same time, its competitors launched a massive offensive during this period, continuously launching more cost-effective products to seize market share.

In such a market environment, the market share of Abeymu's personal PC business has been continuously eroded, and its brand influence has also been impacted to a certain extent.

The once blue giant is now faltering in the personal PC market and is in urgent need of a transformation to regain its strength.

According to authoritative sources, as early as 2000, the top management of Abiymu began to re-examine the strategic positioning of its personal PC business, exploring whether it should continue to invest a lot of resources to maintain this business, or whether it should seek other more feasible development paths.

For IBM, the acquisition by Yanhuang Group is undoubtedly a timely "slimming" action.

By divesting its personal PC business, IBM is able to focus its resources and energy more on its core areas of strength, such as enterprise software, cloud computing services, artificial intelligence and other high-end technologies and solutions.

This strategic adjustment enables IBM to respond more flexibly to market changes and accelerate transformation, thereby re-establishing its leadership in emerging technologies.

In the long run, this will help IBM optimize its business structure, improve its overall profitability, reduce the financial risks brought about by intensified competition in the personal PC market, and enable it to meet future challenges in a more stable manner.

For the Yanhuang Group, the acquisition of IBM's personal PC business was a highly strategic move.

IBM's profound technical accumulation and brand influence in the field of personal PCs provide Yanhuang Group with a platform to quickly improve its own technical level and market recognition.

By integrating IBM's technical resources, Yanhuang Group can accelerate product innovation, launch more competitive PC products, and meet the market demand for high-performance, cost-effective personal computers.

IBM's extensive global sales channels and customer base provide strong support for Yanhuang Group's internationalization strategy. With the help of IBM's channel network, Yanhuang Group can quickly expand overseas markets and enhance its brand awareness and market share worldwide.

In addition, the acquisition of IBM's personal PC business will also help Yanhuang Group to extend further upstream in the semiconductor industry chain and strengthen cooperation with upstream chip manufacturers, thereby enhancing its voice and influence in the semiconductor industry, laying a solid foundation for its long-term development in the semiconductor field.

However, the official announcement of the suspension of the acquisition by Yanhuang Group today means that IBM will continue to carry the heavy burden of the personal PC business and will not be able to obtain capital injection by selling the business for the transformation and development of its core business.

The continued losses in the personal PC business will continue to erode the company's profits, drag down its overall financial performance, and put IBM's valuation in the capital market at risk of further decline.

Today's sharp drop in IBM's stock price also reflects the market's pessimism.

Market analysts believe that in the long run, this may lead to IBM's share in the personal PC market continuing to shrink, its brand influence gradually declining, and it may even face the risk of being completely squeezed out of the market by competitors.

From an industry perspective, Yanhuang Group's shelved acquisition will keep the personal PC market structure as it is. Other competitors may take the opportunity to increase their investment and competition in this market, further intensifying market competition.

As for the Yanhuang Group itself, although it has avoided potential integration risks and financial pressures in the short term, it has also lost the opportunity to quickly enhance its strength in the personal PC field with the help of IBM's technology, brand and channels, slowing down the advancement of its internationalization strategy. It may also affect the pace of its layout extending upstream in the semiconductor industry chain.

Under the situation of internal and external difficulties, and the fact that the mainland Yanhuang Group has shelved the merger and acquisition negotiations, the future of Abiymu is full of uncertainty, and the entire technology industry is also closely watching the next moves of the blue giant and the emerging Yanhuang. "

Then, the scene changed and the airport scene came into view. "The joint delegation of NEC and Dongzhi Group arrived in Huating today. The purpose of this trip is not yet clear, but the industry generally speculates that it is related to the potential cooperation with Yanhuang Group."

Reporters were reporting nervously at the scene. In the background, members of the delegation hurried by with serious expressions on their faces, as if they were shouldering an important mission.

The airport's terminal hall was bustling with people, but everyone's eyes were focused on these business tycoons from the Land of Sakura. Their arrival undoubtedly added a touch of tension and expectation to Huating's business atmosphere.

Reporters' cameras followed the delegation closely, trying to capture more details, while the delegation members, surrounded by bodyguards, quickly left the airport and headed for their destination.

Finally, the news screen switched to Sakura Country, "Nikang and Soni jointly announced today that the 157nm lithography machine has been successfully developed, which means that the world's advanced semiconductor process will be advanced to 90nm.

At the same time, they announced that they will continue to tackle the research and development of 90nm lithography machines, by which time the advanced semiconductor process is expected to reach 45nm.

Industry insiders say that 45nm will be the limit of current technology, and the Sakura Country is at the forefront at the moment.”

In the camera, scientific researchers from the Sakura Country are busy in the laboratory. They are wearing white lab coats and operating various precision instruments with concentration. Every movement reveals their professionalism and rigor.

The precise image of the lithography machine slowly unfolds on the screen. Its complex structure and advanced technology allow the audience to feel the power of science and technology and the leading position of the Sakura Country in the semiconductor field.

The reporter stood outside the laboratory. In the background, the laboratory lights were brightly on and the researchers were still working day and night.

When the media on Izu Island reported the news, there was a hint of anxiety and uneasiness in their tone.

They are well aware that these business trends and technological breakthroughs not only affect the business landscape of China and Sakura Country, but also have a profound impact on the semiconductor industry on Izuku Island.

Against the backdrop of international competition, enterprises on Izuku Island are facing unprecedented challenges.

Slumped in the large office chair, Zhang Zhongmou stared blankly at the TV screen.

The clear and powerful voice of the female anchor was like a continuous heavy hammer, hitting his already fragile heart hard.

At this moment, his heart was shrouded in a haze of despair, and the hope he once held was shattered by the successive bad news.

Inside the office, apart from the monotonous and shrill sound of the TV, there was no other life, and it seemed increasingly deserted and dead.

Yiji Electric is now in an irretrievable desperate situation.

Within the company, talent is flowing out like a tide, and people are in a state of panic. Those employees who used to be passionate and dedicated to the company are now seeking better opportunities and joining companies with greater development potential, leaving behind only empty offices and piles of shelved project documents, silently telling the story of the company's past glory and present desolation.

In the R&D department's laboratory, the once brightly lit and roaring machines are no longer there. Now there are only a few people left, facing the cold equipment, their eyes full of confusion and helplessness;

In the production workshop, the production line slowed down significantly, and the workers repeated mechanical movements expressionlessly. The former hustle and bustle and vitality were gone, and the whole factory was shrouded in a depressing atmosphere. The external environment made the situation even worse. Cao Xingchen's UMC was like a dark horse that suddenly appeared out of nowhere, frantically grabbing orders at an astonishing speed and with a fierce momentum, and swallowing up the market share of Yiji Semiconductor.

The once stable customer base began to waver, order volume dropped sharply, and revenue figures were bleak.

In the decisive battle of advanced process technology, with the official announcement from the Land of Sakura, IJIC Semiconductor suffered an unprecedented Waterloo.

At this time, the earth-shattering official announcement of Nikang and Suoni was like a bolt from the blue, hitting Yiji Dian's fragile nerves hard.

Between the Sakura Alliance and ASML, Zhang Zhongmou initially stood firmly in the ASML camp.

Therefore, in this cruel international competition, IJEC has completely lost the possibility of obtaining the most advanced lithography machines from the Sakura Country.

After all, others will definitely give priority to supplying their own companies, so giving money is useless.

Besides...he was the one who took the lead in choosing a side.

This not only means that an insurmountable barrier has been artificially erected on their road to technological catch-up, but also indicates that the company will be firmly nailed to the pillar of shame of technological backwardness for a considerable period of time in the future, and it will be difficult to turn over.

Technological lag will cause the company to lose ground in the fierce competition with its peers, and watch its competitors run further and further away in the technology race while it can only stand still or even retreat step by step.

Zhang Zhongmou tightly grasped the handrail, staring out the window with sharp eyes, but deep down he was filled with helplessness and anxiety.

He placed all his hopes on ASML's technological breakthrough, as if it was the only life-saving straw they could grasp in the darkness.

However, Jiang Shangyi beside him broke the final silence, with a look of regret on his face, and slowly said,
“Chairman, the situation at ASML is not optimistic. Without the basic information that Lin Benjian has, they will need at least another six months to break through the immersion technology, and 6 months before they can produce a product.

As for dry lithography machines, ASML is also a latecomer and it will also take nine months to produce products.”

Jiang Shangyi's voice was low and hoarse, and every word he said was like a heavy lead block, weighing down Zhang Zhongmou so much that he could hardly breathe.

18 months...

It’s not long, but it’s not short either.

One Moore's Law cycle is enough to change many things in the semiconductor industry.

"And... Chairman, as far as we know, ASML's current financial situation is not enough to sustain for 18 months..."

Jiang Shangyi's eyes were full of helplessness, as if announcing an inevitable ending, an ending that was like an abyss, swallowing up Yi Ji Dian.

Zhang Zhongmou's face turned pale as paper in an instant. He slowly turned his head and looked at Jiang Shangyi, his eyes full of disbelief.

How did IJMC, which won the 180nm copper process war and then broke through 130nm, fall to this point in just a few months?
A feeling of powerlessness surged in his heart, as if the whole world was against him.

Jiang Shangyi was also very clear that in this battle, Yiji Dian seemed to have lost all its advantages, leaving only devastation and endless darkness.

He knew very well that ASML's predicament meant that ASML would also face an unprecedented crisis, but they were powerless and could only watch their hopes shattered bit by bit.

Inside the office, the atmosphere was so heavy that it seemed as if water could drip out of it.

The sunlight outside the window shone through the glass onto Zhang Zhongmou's face, but it could not dispel the haze in his heart.

His fingers tapped lightly on the table, and each tap felt like a tap on his heart.

Jiang Shangyi stood aside, looking at Zhang Zhongmou silently. He knew that at this moment, what they were facing was not only a technical challenge, but also a choice about the future destiny of the company.

Faced with this choice, in his opinion, all they could do seemed to be to wait, to wait for the unknown ending to come.

Bankruptcy or merger.

Zhang Zhongmou suddenly stood up, strode to the floor-to-ceiling window, stared deeply at the busy factory park outside the window, and pondered for a long time.

His figure cast a long shadow in the sunlight, as if he was having a silent conversation with the land.

After a long while, he gritted his teeth and said in a firm tone: "Shangyi, adjust the three wafer fabs currently under construction and switch them all to processes above 130nm."

Jiang Shangyi was shocked when he heard this. He looked up in astonishment and said in disbelief, "Chairman, more than 130nm?"

Zhang Zhongmou was silent for a while, then nodded heavily towards the glass window, "Yes, you heard it right, it's above! Not below!"

"Chairman! This is the future of Yiji Electric!"

Jiang Shangyi's eyes were full of worry. He believed that Zhang Zhongmou's decision would directly ruin the future of Yiji Electric.

Zhang Zhongmou looked at the scenery outside the French window, shook his head, and said with a hint of determination: "No, you and I, our survival is the future of Yiji Electric."

He turned around and sat back in his seat. There was no hesitation on his face, and his eyes revealed an unprecedented determination.

Zhang Zhongmou, with a face as dark as water, continued to speak without any emotion, "Since we can't take the path of technological leadership for the time being, let's take the path of cost leadership.

I firmly believe that Lin Benjian’s original judgment was correct:

According to Rayleigh's theorem, dry lithography machines will not be able to exceed 157nm in the foreseeable ten years.

So the Sakura Country has reached a dead end, and we don’t need to chase it blindly.

ASML and we have a relationship in which we share weal and woe, so at this moment we must support ASML to overcome this difficulty.

加大130nm、0.18微米、0.22微米、0.25微米、0.35微米这五代成熟制程的产能，向ASML采购更多的成熟制程机器。

Shangyi, we must currently give up continued investment in advanced processes and seek efficiency through scale, just like that old man Wang Yung-ching did. We should strive to reduce our costs in mature processes.

In the past few years... we have been working hard on mature processes, and then we have jumped to 65nm with immersion technology!"

Jiang Shangyi was stunned when he heard this. This actually meant giving up two generations of process technology, 90nm and even 65nm, or giving up the huge profits that would be brought by the advanced process technology in the next four years.

His eyes were full of confusion, as if he could not understand Zhang Zhongmou's decision.

A bitter smile appeared on Zhang Zhongmou's face, and his voice was filled with unspeakable helplessness: "Shangyi, this is a business."

He shook his head slowly, as if to emphasize the cruelty of this fact, and repeated it again, "Yes, this is business. Not technology."

The determination in his eyes seemed to tell Jiang Shangyi that this was an unavoidable reality.

"I admit that Sony's 157nm lithography machine puts us in a passive position and puts us in a backward position in terms of technology."

Zhang Zhongmou's voice clearly carried a hint of reluctance, but he quickly adjusted his tone and continued,
"But, Shangyi, the essence of business is not to see who has the most advanced technology."

……

(End of this chapter)